Day: November 10, 2023
The International Monetary Fund on Friday announced a staff-level agreement with Ukraine on updated economic and financial policies, paving the way for a $900 million disbursement from its $15.6 billion lending program once approved by the board.
The global lender said its executive board was expected to consider the agreement in coming weeks.
It said Ukraine met all quantitative performance criteria set for the end of June, and indicative targets for the end of September, as well as most of the structural benchmarks set under the IMF’s Extended Fund Facility program.
The IMF said the Ukrainian economy continued to show “remarkable resilience” despite Russia’s invasion in February 2022, and said recent economic developments pointed to a stronger-than-expected economic recovery in 2023 and continued growth in 2024, as well as substantial disinflation.
“Program performance has been broadly on track despite the extremely challenging backdrop,” Gavin Gray, the IMF official who led discussions with Ukrainian officials in Poland this week, said in a statement.
He said the IMF staff had upgraded its forecast for real GDP growth in 2023 to 4.5% from the previous range of 1% to 3% but expected growth to soften to a range of 3% to 4% in 2024.
“The war in Ukraine continues to have a devastating impact on the population and the economy as attacks on critical infrastructure and air strikes continue countrywide,” he said.
Gray said Ukraine’s fiscal deficit remained very high, reflecting the economic and social cost of the war, which left it with large, ongoing financing needs.
One top priority should be enacting a law to fully restore tax audits and launching the National Revenue Strategy in December as planned. The authorities need to stand ready to take additional revenue measures and should continue their efforts to mobilize financing from the domestic bond market, he added.
The International Monetary Fund on Friday announced a staff-level agreement with Ukraine on updated economic and financial policies, paving the way for a $900 million disbursement from its $15.6 billion lending program once approved by the board.
The global lender said its executive board was expected to consider the agreement in coming weeks.
It said Ukraine met all quantitative performance criteria set for the end of June, and indicative targets for the end of September, as well as most of the structural benchmarks set under the IMF’s Extended Fund Facility program.
The IMF said the Ukrainian economy continued to show “remarkable resilience” despite Russia’s invasion in February 2022, and said recent economic developments pointed to a stronger-than-expected economic recovery in 2023 and continued growth in 2024, as well as substantial disinflation.
“Program performance has been broadly on track despite the extremely challenging backdrop,” Gavin Gray, the IMF official who led discussions with Ukrainian officials in Poland this week, said in a statement.
He said the IMF staff had upgraded its forecast for real GDP growth in 2023 to 4.5% from the previous range of 1% to 3% but expected growth to soften to a range of 3% to 4% in 2024.
“The war in Ukraine continues to have a devastating impact on the population and the economy as attacks on critical infrastructure and air strikes continue countrywide,” he said.
Gray said Ukraine’s fiscal deficit remained very high, reflecting the economic and social cost of the war, which left it with large, ongoing financing needs.
One top priority should be enacting a law to fully restore tax audits and launching the National Revenue Strategy in December as planned. The authorities need to stand ready to take additional revenue measures and should continue their efforts to mobilize financing from the domestic bond market, he added.